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Investment environment in Rason Economic and Trade Zone

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Procedures of Enterprise Establishment

Management Committee of Rason Economic and Trade Zone

Procedures of Enterprise Establishment

① Form of an enterprise

Corporate bodies, individuals and economic organizations of other countries and overseas Koreans may invest in the Zone and establish and run enterprises in such forms as equity and contractual joint ventures, wholly-foreign owned business and others.

② Organ of approval for establishment of an enterprise and registration

The approval for and registration of an enterprise establishment shall be undertaken by the Rason Municipal People’s Committee or the Management Committee of the Rason Economic and Trade Zone.
The approval for an enterprise establishment in such special sectors as banking and insurance shall be given by a relevant central guidance organ.

③ Status of an enterprise

All enterprises in the Zone shall have equal position.
They shall conduct their business activities on the principle of fair competition, equivalent compensation and credit dealings.

④ Establishment of an enterprise

An investor who is going to establish an enterprise shall submit a relevant application directly to the organ of approval or entrust a service office to do so.
The application shall specify the name and address of investor, name of the enterprise to be established, name and career of a legal representative or a chief manager of the enterprise, total investment value and registered capital, types of business, form and duration of investment, management structure, number of employees, period of business and prearranged date of starting operation.
It shall be attached with the following documents:

- Rules of enterprise - Report on feasibility of investment

- Certificates of enterprise registration, business license and tax registration of the investor’s enterprise - List of machines and materials to be invested

- Capital credit certificate of investor issued by his/her correspondent bank

- Guides and copies of certificate of rights to industrial property and technical know-how when they are to be invested

- Investor’s identification

- Data on investor’s company with photographs of its building attached

- Introduction to products

⑤ Approval and rejection of an enterprise establishment The organ of approval for an enterprise establishment shall examine the application for the establishment of an enterprise within 10 days of receipt thereof and issue a document of approval or a notice of rejection.

⑥ Issuance of a certificate of enterprise registration and date of enterprise establishment An enterprise which obtained the approval for its establishment shall make its registration and receive a relevant registration certificate.
The day of issuance of the certificate shall be the date of enterprise establishment.

⑦ Registration for customs and tax affairs An enterprise shall pass through registration of enterprise, customs and tax affairs and pay a fixed commission and then receive corresponding registration certificates within 14 days of receipt of enterprise registration certificate.
All registration certificates of the enterprise shall not be faked, revised, sold or borrowed.

⑧ Mode of investment Investment of an enterprise may be made with currency or property in kind or property rights.
In this case, the evaluation of property in kind or the property rights shall be assessed by the audit office of the Zone on the basis of the international market price at the time of investment.

⑨ Period of investment and its postponement An enterprise shall invest in a fixed period of time, and complete it within 3 years in case of investment in installments.
Primary investment shall be over 30 % of the registered capital with 90 days of the investor’s receipt of the certificate of enterprise registration.
In case investment cannot be completed within the fixed period for unavoidable reasons, the investor shall submit an application for postponing the date of investment to the organ of approval for an enterprise establishment and obtain approval.

⑩ Approval for businessPrior to its operation, an enterprise shall submit an application for approving its business to a relevant organ and obtain approval.
In this case the application shall be accompanied by such documentary evidences as a confirmation of investment records, a confirmation of inspection results on buildings, a warranty on the safety of production lines and facilities, a confirmation of environmental evaluation, and others.
The organ of approval for enterprise establishment shall examine the application for business license within 7 days of receipt thereof and issue a document of approval or a notice of rejection.

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